The primary goal of the Net-Zero Industry Act is to expedite the industrial implementation of essential technologies crucial for advancing toward climate neutrality. The act will fortify the economic resilience and competitive edge of the Union by leveraging the single market's capabilities. 

What is the goal of the Net-Zero Industry Act?

The Act wants to streamline investment conditions for key technologies by simplifying permit procedures and prioritizing strategic projects. It also seeks to ease market access for crucial technology products, improve the skills of the European workforce in these sectors by establishing net-zero industry academies, and create a coordinating platform for EU efforts in this field. Moreover, the act proposes establishing tailored regulatory frameworks, termed regulatory sandboxes, for developing, testing, and validating innovative technologies, with the scope of encouraging innovation.

Furthermore, the Net-Zero Industry Act outlines a target of achieving 40% of production to meet the EU's demands for strategic technology products such as solar photovoltaic panels, wind turbines, batteries, and heat pumps. It also sets a specific goal for CO2 carbon capture and storage, aiming for an annual injection capacity of at least 50 million tonnes of CO2 by 2030.

Ahead of the meeting, two specific points in the text were regarded as crucial political issues, representing unresolved areas of disagreement. The addressed parts were Article 3, which defines strategic technologies, and Article 20, which outlines conditions for market access and auctions.

The disagreements around Article 3

Although the inclusion of nuclear power among the EU's strategic technologies did not hinder the overall adoption of a general approach, it's partly due to the Council text's assurance of respecting Member States' energy sovereignty. The document notes that the list of endorsed strategic technologies "does not impact the allocation of Union funding."

Issues revolving around funding these technologies, linked implicitly to the STEP platform, were raised by Denmark and Italy. These concerns are expected to be addressed during discussions directly tied to revising the Multiannual Financial Framework, which will determine the definitive resources allocated to STEP and their operational scope. Several Member States, notably Germany, oppose such funding.

The disagreements around Article 20

Regarding Article 20, there were more reservations, and France added a recital. The approved text includes qualification criteria beyond project prices, considering their contribution to the Union’s resilience and sustainability. It specifies that 20% of the total project volume reviewed by Member States must consider these non-price criteria. France aims to raise this threshold periodically by 2030 to gradually increase requirements, as stated by Roland Lescure, Minister Delegate for Industry. This adjustment would occur through a delegated act from the Commission after an impact assessment.

However, Member States have the option to disregard these criteria if their inclusion unreasonably inflates the project's cost, with a limit set at 20% of the price. Poland, in particular, emphasized the importance of this flexibility and intends to support "the lowest levels" during trilogue negotiations.

The next steps

Although not all Member States exhibited identical levels of enthusiasm regarding the ultimate version of the negotiating mandate, the EU27 indicated a consensus and highlighted the crucial significance of the Net-Zero Industry Act for the European economy, its global competitiveness, and its shift toward sustainability.

The initial trilogue is set for December 13th, followed by two more sessions on January 22nd and February 6th. An institutional agreement might thus be concluded during the Belgian Presidency of the Council.